Self-Employment Tax Help for Minimizing Taxes
Once you make the decision to start your own business, whether freelancing from home or setting up a storefront, self-employment tax help should be high on your list of business startup tasks. You know your business, have the skills to turn out your products or services, and how to go to market priced for success. These are the areas on which you should focus your time and efforts, not in the minutia of posting income, expenses, and other accounting data.
It is not just the bookkeeping function that you should consider outsourcing. Sure, if you are brand new in business, work alone and at home, you may want to enter your own income and expense items into a spreadsheet or some software solution. This can work until you come to the realization that it is taking time that could be generating more in business income than the cost of hiring a bookkeeping company or person.
This article is about self-employment tax help, not just bookkeeping ledger entries. A turn-key system that can save you much more in taxes than the cost of the system’s components will cover things like:
- Bookkeeping – as already mentioned, the bookkeeping function would be handled for you and assure proper expense categorization and entry. It is mentioned again in this list because, if you can find the right company, having bookkeeping as one of a suite of services designed to minimize your taxes is going to make tax accounting and preparation more efficient and save you tax dollars as well.
- Tax Return Preparation – the smooth movement of your bookkeeping records to the next step, preparation of accurate tax returns is enhanced when both activities are handled in-house by one company. As changes for return preparation are announced by the IRS, and they happen often, the preparer(s) can bring the bookkeepers up to speed immediately to make necessary changes. Questions as to entries or for more detail are handled much more efficiently and faster when both bookkeeping and tax return preparation are handled in one solution.
- Audit Response and Representation – working with a company with an appropriately licensed tax professional on staff can be of great value should the IRS have questions about your return or worse, generate an audit letter. No matter how accurate your return and how expert the staff handling the accounting, the IRS can decide to question something. Often the question can be handled quickly with no fuss or penalties if a licensed tax professional answers with the reason for the entry and deduction or action. If the worst case of an audit happens, an appropriately licensed tax professional can represent you in front of the IRS can make a huge difference.
- Asset Protection – protect the assets you work so long and hard to build. From insurance to tax entity formation, asset protection should be an area of focus for self-employment tax help.
- Estate and Retirement Planning – Estate planning is not required for self-employment tax filing, but it should be a concern at some point. If you work with a company for the other solutions that can help in this area as well, you can protect your estate in case you are incapacitated, or you can specify what should happen if you pass away.
You can minimize your costs for self-employment bookkeeping and tax preparation, or you can minimize your taxes for greater savings with services for self-employment tax help.